The balance in the supplies account on June 1 was $5,200, supplies purchased during June were $3,500, and the supplies on hand at June 30 were $3,000. The amount to be used for the appropriate adjusting entry is
A) $3,500.
B) $5,700.
C) $6,500.
D) $11,700.

Question

Quizplus · Accepted Answer

The supplies account needs to be adjusted to reflect the supplies on hand at the end of the period. The adjusting entry would be:

Supplies Expense (debit) = Supplies on Hand (credit)
 
Supplies purchased during the period do not affect the adjusting entry. Therefore, the amount to be used for the appropriate adjusting entry is the difference between the beginning balance and the ending balance of the supplies account, which is $5,200 - $3,000 = $2,200. Adding this to the purchases made during the period ($3,500) gives us the total supplies used during the period of $5,700, which is the correct answer.

The Balance in the Supplies Account on June 1 Was